In Thailand, there are some entities that are exempted from corporate income tax while there are legal entities that are liable to pay corporate income tax on net income:

1. A company or juristic partnership established under Thai law:

• Limited Company
• Public Limited Company
• Limited Partnership
• Registered General Partnership

In the case where a juristic partnership established under Thai law has branches, whether it is in or outside Thailand, the net profit of the branch must be included with the net profit of the head office in order to pay corporate income tax in Thailand.

2. A company or juristic partnership established under foreign laws.

Companies or juristic partnerships established under foreign laws and liable to pay corporate income tax in Thailand include:
a) A company or juristic partnership established under the laws of a foreign country and carrying on business in other places and in Thailand, including companies or juristic partnerships established under the laws of such foreign countries are required to pay corporate income tax only on net profits derived from business operations in Thailand.
b) A company or juristic partnership established under foreign law has employees or representatives or contacts in carrying out business in Thailand, which results in income or profits being received in Thailand. Such person, whether a natural person or a juristic person, who hires such employees, representative or contacts, shall be deemed to be a representative of the company or juristic partnership established under foreign law and such person shall have the duty and responsibility to file a return and pay income tax only in relation to such income or profits.

3. Businesses which are carried out for trade or profit by a foreign government, a foreign government organization or other juristic person established under the laws of a foreign country.
4. Joint ventures

If you want to know more details about Thai taxation and accounting, contact MSNA to set up a consultation.

Normally, the entities that are only established under Thai law such as ministries, government departments, organizations or cooperatives are not required to pay corporate income tax.

However, there are also some types of juristic persons that are subject to corporate income tax under the Revenue Code but are exempted to pay tax under the provisions of various laws as below:

1. A company or juristic partnership under obligations under an economic or technical cooperation agreement between the Thai government and a foreign government.
2. A limited company that is exempted from corporate income tax under the Investment Promotion Act. This includes a company that has obtained the BOI promotion and has been granted with tax incentives.
3. Limited companies or juristic persons having the same status as limited companies established under Thai law or foreign law are exempted from corporate income tax under the Petroleum Income Tax Act.
4. A company or juristic partnership located in a country that has a double taxation agreement with Thailand, under the conditions specified in the DTA.

Thai taxation has a unique structure therefore; it is highly recommended to consult with the Thai tax experts like us. Contact MSNA for the best Thai tax advice.

A targeted business industry covered under the Royal Decree No. 793 B.E. 2568 (2025) is a juristic partnership or corporate entity that has developed, utilizes its innovation and technology for production of goods or services that the Thai government promotes, and contributes to the country’s competitiveness.

Such targeted industries include companies or juristic partnerships operating in sectors defined by the following laws:

• National Competitiveness Enhancement for Targeted Industries Act B.E. 2560
• Investment Promotion Act. B.E. 2520
• Eastern Special Development Zone Act B.E. 2561

For more clarifications about Thai taxes, contact MSNA for consultation.

The Thai Cabinet has recently approved the Royal Decree No. 793 B.E. 2568 (2025) which provides substantial tax incentives. This aims to attract highly skilled Thai professionals working abroad to return to Thailand and work in the targeted industries in order to support the economy’s growth by offering personal income tax reductions and corporate tax benefits for individuals and the companies that will employ them.

The personal income tax rate for individuals employed by the targeted industries is reduced to 17% whole companies operating in targeted industries are entitled to 50% corporate income tax exemption on salary expenses paid to qualified employees. This exemption applies to salaries paid from 25 March 2025 (the enforcement date) until 31 December 2029.

To be eligible for reduction and exemption of taxes and duties, the taxpayers must meet the following criteria.

For individuals:

1. Must be of Thai nationality
2. Completed at least a bachelor’s degree
3. Must have a minimum 2 years work experience abroad
4. Must have not previously worked in Thailand during the application year and must not have been a tax resident of Thailand in the past 2 years
5. Must be employed by a company in a targeted industry, entered in Thailand to begin employment between 25 March 2025 and 31 December 2025.
6. Stayed in Thailand for at least 180 days in the tax year which the reduced tax rate is applied, except for the first or final year of eligibility
7. Complied with all conditions set by the Director-General of the Revenue Department

For Employers (Companies or Juristic Partnerships)

1. Must operate in a targeted industry as defined by relevant laws
2. Must notify the Revenue Department before payment of first salary to the eligible individual. The tax reduction will be applied from the notification date
3. Ensure salary expense has not been used for any other tax incentive claims

For personal and corporate income tax filing and more information on Thai tax laws, contact MSNA for further consultation.

In the event that a taxpayer was not able to submit and make the tax payment on time, there are penalty and surcharge to be paid upon submission of tax returns. This also applies if a taxpayer who filed the tax returns within the due date but does not pay the full amount of tax, or file the form late, neglected or avoided filing the tax return, he/she must pay additional fees and fines as prescribed by law. If he/she fails to pay, there might be criminal penalties as follows:

1. In case of failure to pay tax within the due date, additional surcharge of 1.5% of tax amount per month of the tax due and it must be paid within the specified time.
2. In case of filing the tax return on time but the tax amount was not paid correctly, there is a fine of 1 or twice the amount of the tax due, as the case may be. Such fine maybe reduced or exempted in accordance with the regulations prescribed by the Director-General with the approval of the Minister.
3. In the case of intentionally reporting false information or presenting false or fraudulent evidence to evade or attempt to avoid paying taxes, the penalty is imprisonment from 3 months to 7 years and a fine from THB 2,000 to THB 200,000.
4. In the case of intentional negligence in submitting a tax return in order to avoid paying taxes, there is a fine of not exceeding THB 200,000 or imprisonment not exceeding 1 year, or both.

Know more about your duties as a taxpayer in Thailand and make sure you submit your taxes correctly and on time to avoid the above consequences. Contact MSNA for getting tax ID, preparing and filing tax returns and tax consultation.

When a taxpayer has submitted his/her tax return within the specified deadline but there is a problem or error in the computer program or the e-filing system or payment method which resulted to the tax filing and payment to be unsuccessful, the form can be filed and the tax can be paid within 7 business days from the last day of filing via the internet and a request for an extension can be submitted.

The taxpayer must submit a petition along with the form and pay the tax at the Revenue Department’s area office along with the supporting documents as follows:-

• Request for extension and a letter of consider for disclosure of information
• Explanation letter of the cause of problem or error
• A copy of the list submitted through the House of Representatives
• Copy of Form B.Ch.35, if required

MSNA can assist individual taxpayers in filing their Thai personal income tax returns and corporate taxpayers in filing their corporate income tax returns and monthly taxes. We have vast knowledge and expertise in accounting and Thai tax laws. Make sure you submit your taxes on time. Contact us now for more information.

One of the questions our clients ask us the most is how much tax rate to use when calculating Corporate Income Tax in Thailand.

The corporate income tax rates depends on the amount of capital and its net income during the year. To explain it further:

1. If the company has less than THB 5 million capital and has less than THB 30 million income, the tax rates to be used are as follows:-

Tax Rate

First THB 300,000 = 0%

300,001 – 3,000,000 = 15%

Over 3,000,000 = 20%

2. If the company has more than THB 5 million capital and even if they decrease it later, it is fixed to 20% every year as long as the company is existing.

3. If the company has more than THB 30 million income and if the income decreases next year, it is also fixed to 20% as long as the company is existing.

Make sure your accounting and taxes are done properly and be mindful of the deadline for submission of corporate income tax and audited financial statements. Contact MSNA for consultation on Thai taxes and filing of requirements for your company in Thailand.

Corporate Income Tax is a direct tax imposed juristic companies or partnerships doing business in Thailand or those that do not do business in Thailand but getting certain types of income from Thailand.

Who are liable for Corporate Income Tax?

The taxable person are as follow:-

1. A company or juristic partnership incorporated under Thai law:
   • Limited company
   • Public company limited
   • Limited partnership
   • Registered partnership
2. A company or juristic partnership incorporated under foreign laws:
   • a company or juristic partnership incorporated under foreign laws and carrying on business in Thailand
   • a company or juristic partnership incorporated under foreign laws and carrying on business in other places including Thailand
   • a company or juristic partnership incorporated under foreign laws and carrying on business in other places including Thailand, in case of carriage of goods or passengers
   • a company or juristic partnership incorporated under foreign laws which has an employee, an agent or a go-between for carrying on business in Thailand and as a result receives income or profits in Thailand
   • a company or juristic partnership incorporated under foreign laws and not carrying on business in Thailand but receiving assessable income under Section 40(2)(3)(4)(5) or (6) which is paid from or in Thailand
3. A business operating in a commercial or profitable manner by a foreign government, organization of a foreign government or any other juristic person established under a foreign law.
4. Joint venture
5. A foundation or association carrying on revenue generating business, but does not include the foundation or association as prescribed by the Minister in accordance with Section 47 (7) (b) under Revenue Code

MSNA group of companies can assist in accounting & tax, audit and filing of the audited financial statements and corporate income tax returns with the Department of Business Development and Revenue Department. We can also help in registering the company with online tax filing system.

For filing of Thai personal income tax returns with the Thai Revenue Department, these are the cases where foreign-based income is not subject to Thai taxes.

1. If foreign-sourced income derived before 1^st January 2024 and remitted into Thailand in a later tax year
2. Foreign-sourced income is derived by a foreigner who is NOT a Thailand tax resident but later remitted such income into Thailand

A foreigner is considered a tax resident of Thailand if he/she has stayed in Thailand for at least 180 days during the calendar year and has derived income either within Thailand or outside Thailand.

Moreover, foreigners must include both income sourced within and outside Thailand in the filing of his/her Thai personal income tax return. Taxable income shall be an aggregate amount of Thai-sourced income earned during the tax year and foreign-sourced income remitted to Thailand during the tax year. Hence, if foreign-sourced income is remitted partially, the taxable amount shall be apportioned accordingly.

MSNA can help Thai tax residents compute and submit their personal income tax returns. Contact us now for getting tax ID card, filing the tax returns and obtaining Tax Residence Certificate or Income Tax Payment Certificates.

One of our clients that is engaged in trading business has recently registered its branch into the VAT system with the Revenue Department. Now, they have 2 VAT registration certificates, one for the main office and another one for its branch. Today, they asked us which one to use and when it should be used.

Our reply:

When you buy things for the head office, you need to tell the supplier to issue their tax invoice to your head office. And when you buy things for your branch, then the supplier should issue their tax invoice for the branch.

The tax invoice issuer should put the word “head office” or “Branch No.1” on the tax invoice for you.

Contact MSNA for accounting and tax filing needs. Thai Lawyers can help you register your company and your branches into the VAT system.